Capital participation (sometimes also called ''equity participation'' or ''equity interest'') is a form of
equity sharing not restricted to housing, in which a
company, infrastructure, property or
business is shared between different parties.
Shareholder
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal ...
s
invest in a business for
profit maximization and
cost savings, e.g., through
tax deduction. A visible and controversial form of capital participation can be found in
public-private partnerships in which the
private sector
The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The ...
invests in public projects and usually receive a time-limited
concession for
ownership
Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...
or
operation
Operation or Operations may refer to:
Arts, entertainment and media
* ''Operation'' (game), a battery-operated board game that challenges dexterity
* Operation (music), a term used in musical set theory
* ''Operations'' (magazine), Multi-Man ...
to make profits from the acquired property.
See also
*
loan
*
risk capital
*
angel investor
*
shareholder
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal ...
*
joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...
*
profit sharing
*
private equity
*
takeover
*
mergers and acquisitions
*
privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
References
{{Authority control
Ownership
Investment